Ukraine Latest: Wagner Renews Withdrawal Threat Over Supplies

Yevgeny Prigozhin, the founder of Russia’s Wagner mercenary group, renewed a threat to pull his forces from the battlefield near Bakhmut in eastern Ukraine because of an ammunition shortage.

(Bloomberg) — Yevgeny Prigozhin, the founder of Russia’s Wagner mercenary group, renewed a threat to pull his forces from the battlefield near Bakhmut in eastern Ukraine because of an ammunition shortage. 

The target of Prigozhin’s ire, Russian Defense Minister Sergei Shoigu, later on Friday ordered commanders to ensure supplies of weapons and munitions for the campaign during a visit to the Southern military district.  

Air raid sirens that sounded in the Ukrainian capital were canceled, though the Donetsk regional governor said two cities had been targeted by missiles.

Key Developments

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  • Wheat Set for First Weekly Gain in Three on Ukraine Trade Worry
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(All times CET)

Chechen Leader Says He’d Replace Wagner Group If It Goes (6:44 p.m.)

Chechen leader Ramzan Kadyrov said on Telegram that Chechen servicemen are ready to replace Wagner Group fighters in Bakhmut if Prigozhin delivers on his threat to withdraw his mercenary force.

Still, Kadyrov praised Prigozhin, calling him his “older brother.” Kadyrov urged Prigozhin and Russian military leaders to agree on arms supplies and not to argue in public.

UN Says No New Vessels Approved for Ukraine Grain Corridor (6:39 p.m.)

The Istanbul-based Joint Coordination Centre didn’t reach agreement on Friday to authorize new vessels to participate in the Black Sea Grain Initiative, Farhan Haq, a spokesperson for the United Nations secretary-general, said. 

Daily inspections work on previously authorized vessels continues, he said. Vessel traffic through the Ukraine crop-export corridor has been repeatedly disrupted in recent weeks. The current agreement expires on May 18.

Ukraine Lauds Approval of €1 Billion Tranche for Ammunition (6:01 p.m.)

Ukrainian Foreign Minister Dmytro Kuleba hailed the approval of a €1 billion ($1.1 billion) European tranche for the joint procurement of ammunition for his country.

Enterprises Targeted in Strikes, Governor Says (5:35 p.m.)

Industrial enterprises in the eastern Ukrainian cities of Slovyansk and Kramatorsk were targeted in missile strikes, though no casualties were reported, Donetsk regional Governor Pavlo Kyrylenko said on Facebook. 

Buildings were damaged by S-300 missiles, but all valuable equipment had already been evacuated to safer regions of Ukraine, he said.

Raiffeisen Aims to Spin Off Russian Unit by October (3:39 p.m.)

Raiffeisen Bank International AG is hoping it can complete a spin off of its Russian subsidiary by the end of the third quarter.

The Austrian lender announced in March it plans to sell or spin off its Russian subsidiary amid growing pressure from regulators and governments. A final decision hasn’t been made and either outcome could ultimately fail should the costs prove to be too high, Chief Executive Officer Johann Strobl said Friday.

Russia to Resettle Residents in Zaporizhzhia Towns Amid Fighting (3:24 p.m.)

Russian occupation authorities said they are “temporarily resettling” about 70,000 civilians from 18 towns and villages in the Zaporizhzhia region, including Enerhodar, which is home to a major nuclear power plant, amid rising fighting in the area, Tass said.

Evgeny Balitsky, the Russian-appointed governor, said that the order applies primarily to women, children and the elderly. He said they would be moved away from the front elsewhere in the region.

Fighting around the Zaporizhzhia nuclear plant in Enerhodar has raised fears for months of damage to the facility. The International Atomic Energy Agency has been negotiating to establish a security zone around it but so far without success.

NATO Steps Up Submarine Monitoring (2:37 p.m.)

The North Atlantic Treaty Organization is stepping up monitoring of submarines after the defense alliance warned that Moscow is mapping European Union and US critical underwater assets.

As part of an exercise, which started April 24 and ends Friday, 12 NATO nations teamed up their marine patrol aircraft, surface ships and friendly subs to search for a submarine with very little information.

The Dynamic Mongoose drill took place in the so-called Greenland-Iceland-UK gap, through which Russian vessels need to pass to access the Atlantic Ocean. 

Read more: NATO Drills Sharpen Submarine-Hunt Skills in Russia’s Backyard

Zelenskiy Meets With Bahrain Foreign Minister (1:21 p.m.)

During a meeting with Bahrain’s foreign minister, Ukrainian President Volodymyr Zelenskiy thanked the Persian Gulf nation for its respect for his country’s sovereignty and territorial integrity.

Zelenskiy presented Ukraine’s “peace formula” at the Kyiv event with Foreign Minister Abdullatif bin Rashid Alzayani and invited Bahrain to take part in a peace summit that’s being organized. 

The issue of returning Ukrainian children home, as well as the country’s recovery needs were also discussed, according to Zelenskiy’s office.

Wheat Prices Set for Weekly Gain on Ukraine Trade Worries (12:17 p.m.)

Wheat futures in Chicago headed for the first weekly gain since mid-April on concerns over the outlook for Ukraine’s crop trade.

Tensions in the region escalated this week after Russia claimed the US was behind a drone strike on the Kremlin that it blamed on Ukraine, but it provided no evidence. The rift comes during a crucial time for negotiations over the Black Sea crop-export deal. A meeting of deputy defense ministers has been postponed to next week from Friday, according to Turkish media reports.

Russia’s Big Rupee Surplus With India a Problem, Lavrov Says (11 a.m.)

Russia’s large trade surplus in rupees has become “a problem” because Moscow has billions of the Indian currency it can’t use, Foreign Minister Sergei Lavrov told reporters.

“We accumulated billions of rupees on accounts in Indian banks and we need to use this money. But for now, these rupees must be transferred in another currency and this is being discussed” with India, Lavrov said after talks with officials in Goa. 

Russian energy exports to India have surged since the Kremlin invasion of Ukraine, but restrictions on rupee convertibility make it hard for Moscow to spend the proceeds.

Prigozhin Renews Threat to Pull Out of Bakhmut (10:25 a.m.)

Prigozhin, founder of the Wagner group, accused Russian Defense Minister Shoigu and other senior officials of failing to supply his mercenary troops in Ukraine with enough ammunition. 

In an expletive-laden video filmed in front of a field of corpses, Prighozin renewed a threat made over the weekend to pull his forces out of the Ukrainian city of Bakhmut, where they’ve been fighting since summer. 

“These are all Wagner guys who were killed today, the blood is still fresh,” Prigozhin said in the video posted Friday on his Telegram channel, in which he claimed his troops lacked 70% of the ammunition they needed. 

Read more: Prigozhin Renews Threat to Pull Out of Bakhmut on Shell Shortage

China Has Role to Play for Peace in Ukraine, Borrell Says (10 a.m.) 

Josep Borrell, the EU’s foreign policy chief, reiterated that China has a role to play in returning peace to Ukraine “even if it is on the side of Russia.” 

“China is a permanent member of the Security Council, China is the one who has the biggest influence on Russia,” Borrell said in Florence, Italy, at the European University Institute’s State of the Union conference. 

“The reality is [Russian President] Putin continues saying ‘I have military objectives and as far as I don’t get these military objectives I will continue fighting,’” Borrell said. “So peace plans are good but you need someone who wants to talk about peace, really.” 

Seven Regions Face Power Cuts After Russian Shelling (10 a.m.)

Residents of several settlements in several regions of Ukraine, including Donetsk, Zaporizhzhia, Sumy, Chernihiv, Kharkiv, Kherson and Kyiv, suffered power cuts after recent Russian shelling, Ukraine’s energy ministry said in emailed statement. 

A TPP unit and a coal mine in Donetsk region were also cut off the grid Friday morning after an artillery strike. Repair crews are at work to restore power “where the security situation allows,” the ministry said. 

Southern Russian Oil Refinery Under Attack for Second Day (8:40 a.m.)

The Ilsky oil refinery in southern Russia’s Krasnodar region was attacked Friday morning by a drone for the second time in as many days, according to TASS. A fire was quickly put out and there were no injuries, the Russian news agency reported. 

Located about 150 kilometers (93 miles) from the Kerch bridge from mainland Russia to occupied Crimea, the refinery was also hit by three drones on Thursday morning. One tank with oil products was destroyed and another caught fire in that incident, according to Interfax.

The incidents follow an attack on a fuel depot in Sevastapol on the Crimean peninsula on April 29 that triggered a huge fire and was blamed by the region’s Kremlin-appointed governor on Ukrainian drones. Kyiv never confirmed its involvement. Russia also said a drone was shot down over Crimea on Thursday.  

Orban Says Counteroffensive is Ukraine’s Last Chance (8:30 a.m.) 

Ukraine’s expected counteroffensive against Russia in the nation’s south will “clear up the situation,” opening the way for diplomatic peace negotiations, Hungary’s Prime Minister Viktor Orban said in an interview on state radio. The offensive is Ukraine’s “last bullet” to change the military situation in its favor, he added, without elaborating on what might happen next. 

Hungary’s leader expressed skepticism about Ukraine’s ultimate chances against Russia, even with increasing supplies of weapons from Western allies, saying the idea that nuclear-armed Russia would accept defeat is “the stuff of tales.” 

Rail Accidents Create Localized Disruptions to Russia’s Military, UK Says (7:30 a.m.)

An increase in Russian rail accidents in areas bordering Ukraine, attributed to sabotage by unknown actors, “has almost certainly caused short-term localized disruption to Russian military rail movements,” the UK defense ministry said. 

“These incidents will increase pressure on Russia’s internal security forces, who will highly likely remain unable to fully protect Russia’s vast and vulnerable rail networks from attack,” the ministry said in a Twitter update. 

Ukraine Says Two Drones Shot Down Overnight (7 a.m.)

Ukraine’s air defense intercepted two Iranian-made loitering Shahed-136/131 drones launched from the southeast overnight, it said on Telegram. The UAVs were downed in Ukraine’s eastern region, the air force said, without elaborating.    

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